Extending the concept of supply chain: The effective management of value chains

Supply chain management (SCM) is a major issue in many industries as organisations begin to appreciate the criticality of creating an integrated relationship with their suppliers and customers, as well as all other stakeholders. Managing the supply chain has become a way of improving competitiveness by reducing uncertainty and enhancing customer service. The concept of value chain management (VCM) is becoming quite prevalent in industry. Despite this popularity, there is little evidence of the development of accompanying theory in the literature. Without theory development, it is difficult to identify specific hypotheses and propositions, which can be tested, resulting in research that lacks focus and is perhaps irrelevant. This paper analyses the merits and limitations of SCM and provides broader awareness of VCM, its critical success factors and proposes a model, which covers four key elements supported by a drive on agility and speed. (C) 2003 Elsevier B.V. All rights reserved.